CBH Engineering secures RM88m Selangor data centre grid connection job, second win in two weeks

Malaysian engineering services firm CBH Engineering Holding Bhd has landed an RM88.05 million contract to design and build a 275kV consumer landing station for a data centre in Selangor, marking its second data centre-related project award in under two weeks. The contract was awarded to a wholly owned subsidiary by Company A, a private entity engaged in providing infrastructure for hosting, data processing services and related activities. CBH Engineering did not disclose the client's identity in its bourse filing, citing a non-disclosure agreement.

The scope of work involves the design and construction of a high-voltage consumer landing station, a critical component for connecting the data centre to the national grid. The project commenced on August 13, 2026, and is scheduled for completion by May 12, 2027. This latest win follows an RM59.61 million work order announced on August 26 for electrical infrastructure works at a data centre in Johor, also awarded by a private company. Combined, the two contracts are valued at RM147.66 million, underscoring the company's growing traction in the data centre supply chain across Malaysia.

The contract awards come amid a sustained rally in CBH Engineering's share price since its listing on the ACE Market in January 2025. The stock has climbed 93% year to date and 163% over the past 12 months. On Monday, shares closed 4.4% higher at 95 sen, giving the company a market capitalisation of RM1.79 billion. The rally has been accompanied by insider activity: managing director and major shareholder Cheah Boon Hwa recently disposed of a 5% stake comprising 94 million shares for RM76.14 million via his private investment vehicle Quay Holdings Sdn Bhd, sold through a direct business transaction on August 21 at 81 sen per share.

The company's financial performance has kept pace with its order book growth. Net profit more than doubled in the second quarter ended June 30, 2026, rising to RM24.53 million from RM10.11 million a year earlier, while revenue surged 102.6% to RM120.93 million from RM59.68 million. The back-to-back contract wins highlight the accelerating demand for electrical and grid infrastructure tied to data centre development in Malaysia, particularly in key hubs such as Selangor and Johor. As hyperscale and enterprise data centre projects continue to expand across the region, engineering firms with specialised high-voltage and electrical capabilities are increasingly well positioned to capture follow-on work.